CodeNature "Efforts to Resolve Capital Impairment and Promptly Lift Delisting Reasons in the Second Half"

CodeNature announced on the 16th that its capital erosion ratio for the first half of the year increased to 59.21% due to losses from derivative product valuation (convertible bonds). However, the derivative product valuation loss occurred due to the difference between the conversion price of the previously issued convertible bonds and the stock price, and it is a loss without actual cash outflow.

A company official stated, "In the second half of the year, we plan to remove the derivative product valuation loss by changing and agreeing on some conditions of the bonds and convertible bonds with bondholders," adding, "We will resolve the capital erosion to ensure there are no issues in the year-end audit report."

This valuation loss occurred following the stock transfer agreement involving a change of the largest shareholder on June 30 and the announcement of a 100 billion KRW investment attraction, which led to a sharp rise in the stock price. Due to this capital erosion, CodeNature has been added to the list of stocks requiring investor caution.

The official said, "CodeNature, which has faced many management and financial difficulties, experienced a rise in stock price due to the recruitment of new management, investment attraction, and expectations for new business, resulting in the derivative product valuation loss."

He continued, "The new management is also considering a plan to strengthen management rights by acquiring convertible bonds from existing bondholders and converting them into common stock," adding, "We will strive to regain investors' trust as soon as possible."